Livewire 'Buy, Hold, Sell'. Two fundies - Montgomery Investment Management and Shaw and Partners - rate CTD as a Sell due to the impact of the coronavirus on second half earnings. They see it as just another headwind to the corporate travel sector generally, along with Brexit and lower consumer spending.
07-May-2020: Covenant Waiver and Market Update
Covenant waiver on existing facility
Corporate Travel Management (CTM, ASX:CTD) is pleased to announce that it remains in a strong liquidity position and has reached agreement with its existing banking group to waive all financial covenants for calendar year 2020.
The following key terms have been agreed:
Managing Director Jamie Pherous said, “We are pleased with the continued support of our banking group and the outcome that we have achieved. As at today, we are in a net cash position of approximately $30 million (net of client cash) and when combined with the revised banking facility terms and low cash burn, we remain in a strong liquidity position and are well placed to rebound once travel resumes.”
Market Update: Macquarie Australia Conference Presentation
The announcement [link above] also contains a market update presentation that Managing Director Jamie Pherous presented today at the Macquarie Australia Conference.
It ends with the following Summary:
--- click on the link at the top of this straw for more of this announcement - including the full presentation ---